Employer Strategies for Reducing Healthcare Costs in 2020
How Companies Are Managing & Reducing Healthcare Costs
Yes, the price of health insurance is still rising. But that’s no surprise. Companies have nervously anticipated that news annually for a long time. The good news—or as good as it gets—is that the rise in employer healthcare costs per employee has plateaued over the last few years.
According to the Society for Human Resource Management (SHRM), employer healthcare costs in 2019 were to only experience about a 6 percent hike from 2018. That’s certainly not inconsequential, but it roughly matches the year-to-year increases from the previous five years. Over that period the annual rate boost has ranged between about 5.5 percent and 7 percent. It’s been worse.
SHRM also reports that the average cost of employer-provided health insurance in 2019, including employee contributions and out-of-pocket costs, would reach nearly $15,000. Employer healthcare costs per employee will be about 70 percent of that total, or some $10,400 per worker.
So the good news is somewhat limited, but business leaders must make the most of whatever positive trends can be found in this critical cost category. What else can employers do to their healthcare costs?
Strategies for Reducing Employer Healthcare Costs
And that’s the question CEOs, benefits managers, and business owners are asking themselves—what else can they do? As the average cost of employer-provided health insurance in 2019 is likely to continue to rise, though at more manageable levels t